South Korea’s top memory chipmakers will partner with the government to boost DRAM production amid AI-driven supply shortages.
Samsung Electronics and SK Hynix will invest a combined $590 billion to build new semiconductor manufacturing facilities in South Korea. The initiative aims to address global memory chip shortages driven by surging AI demand, which has pushed prices higher worldwide.
The investment includes four new chipmaking plants, with $516 billion allocated to double South Korea’s DRAM production capacity. The government outlined plans for additional infrastructure, including advanced packaging and supply-chain hubs, to secure technological leadership.
The announcement follows warnings from industry leaders about the urgency of expanding capacity to meet AI and data center demand. South Korea seeks to outpace competitors in securing critical semiconductor technologies.